Stimulus Check Has Reduced Poverty Rate, But There Is A Need For More

Stimulus Check
Stimulus check

For the first time this year, the poverty rate in America has fallen. The Biden administration’s stimulus checks, as well as jobless aid, have reportedly helped 1.6 million Americans out of poverty.

Capitol Hill had passed a bill amounting to 900 billion dollars for covid relief in December. It included stimulus checks worth $600 and made more occupations eligible for unemployment benefits.

However, research has warned that these gains will soon wear off if the capital injection is not continued. On that front, the recent 1.9 trillion dollar measure has now been passed onto the Senate.

The Effect Of The Stimulus Checks

The fall in the poverty rates marks a reversal of the situation for the first time since the pandemic had started. As many as 8 million people had faced poverty between the months of June and December last year, a recent study has shown.

For groups such as the Blacks and people who are not graduates, the poverty rate fell drastically. However, the numbers are still substantially high. For example, the number of people in poverty for the Blacks is twice that of the whites. For those who do not have degrees, it is triple the number of those who are qualified in some field.

The most recent $1.9 trillion covid relief bill is set to offer a third round of stimulus checks starting from $1,400 for an individual. The amount varies depending on the person’s financial situation and income. It is also set to raise the jobless aid to $400 a week, and continue it till August.

The Labor Department reports that almost 19 million people are benefitting from the current aid.

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